AFP
CTP · Question #837
(Topic 9) Which scenario provides the BEST example of an agency problem?
The correct answer is C. An account manager approves a risky loan in order to meet a salary incentive. See the full explanation below for the reasoning.
Question
- (Topic 9)
Which scenario provides the BEST example of an agency problem?
Options
- AA CFO hires an independent auditor to review the company's balance sheet.
- BA Treasurer accepts a free round of golf from a banker.
- CAn account manager approves a risky loan in order to meet a salary incentive.
- DA CEO is close friends with a competitor's CEO.
How the community answered
(52 responses)- A4% (2)
- B13% (7)
- C75% (39)
- D8% (4)
Community Discussion
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